Shares of hydrogen fuel cell company Plug Power Inc (NASDAQ: PLUG) have plummeted after the company announced the pricing of its upsized stock offering.
On Monday in after-hours trading, its stock plunged following the announcement of the $750 million in a common stock offering which would have represented around 30 million shares. However, later that same evening, they announced an offering of 38 million shares priced at $22.25, an 11% discount compared to Monday’s closing price of $24.99.
Plug also said that it has granted the underwriters, Morgan Stanley, a 30-day option to purchase up to an additional 5.7 million shares at the public offering price.
The offering is expected to close on or around the 19th of November.
The company revealed its plans to use the funds raised for working capital and other general corporate purposes which may include capital spending, potential acquisitions, growth opportunities and strategic transactions.
Its share price is down 10.66% at $22.36 at the time of this publication. So far, in 2020, its stock has gained over 691%.